The news on the economy keeps getting better, but the stock market has just suffered its worst decline of 2014. What�� going on? Understanding what�� happening is the key to knowing whether to go for value or momentum in the next few months.
On July 24th, the S&P 500 and Nasdaq 100 both hit another round of new all-time highs, but it�� been mostly downhill since then. As I write, the S&P 500 has rebounded a bit, but it�� too soon to say whether another substantial upswing is under way.
Risks for the second half of 2014 focus on the end of the ��oldilocks��economy ��either (1) the economy slows down too much and causes corporate profits to decline; or (2) the economy heats up too much and causes a spike in inflation and �interest rates.
The current bull market is unique in history as the first one that has occurred�in the absence of strong economic growth���bolstered almost entirely by extraordinarily-easy monetary policy.
Second-quarter GDP grew�a surprisingly strong 4 percent.� According to economist Douglas Holtz-Eakin, however, 1.7 percent of the Q2 growth was inventory building which is unsustainable, so real economic growth was only 2.3 percent.
Most economists forecast continued economic growth for the remaining half of 2014 because:
Best Blue Chip Companies For 2015: Waste Management Inc.(WM)
Waste Management, Inc., through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling, and disposal services. The company also owns, develops, and operates waste-to-energy and landfill gas-to-energy facilities in the United States. Its collection services involves in picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility, or disposal site; and recycling operations include collection and materials processing, plastics materials recycling, and commodities recycling. In addition, it provides recycling brokerage, which includes managing the marketing of recyclable materials for third parties; and electronic recycling services, such as collection, sorting, and disassembling of discarded computers, communications equipment, and other electronic equipment. Further, the company e ngages in renting and servicing portable restroom facilities to municipalities and commercial customers under the Port-o-Let name; and involves in landfill gas-to-energy operations comprising recovering and processing the methane gas produced naturally by landfills into a renewable energy source, as well as provides street and parking lot sweeping services. Additionally, it offers portable self-storage, fluorescent lamp recycling, and medical waste services for healthcare facilities, pharmacies, and individuals, as well as provides services on behalf of third parties to construct waste facilities. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is based in Houston, Texas.
Advisors' Opinion:- [By Laura Brodbeck]
Tuesday
Earnings Expected From: Waste Management, Inc. (NYSE: WM), Johnson Controls, Inc. (NYSE: JCI), Electronic Arts Inc. (NASDAQ: EA), LinkedIn Corporation (NYSE: LNKD), Nokia Corporation (NYSE: NOK) Economic Releases Expected: �US consumer confidence, US PPI, Canadian PPI, British mortgage approvals and consumer credit, French consumer confidenceWednesday
- [By Damian Illia]
During 2008, Republic Services and Allied Waste merged to create a strong company which could compete with number-one waste management company Waste Management Inc. (WM). It is true this industry has a rather constant nature, as trash volume increases with population growth, urban construction, industrial production and commercial activity. Still, the macroeconomic context during 2008 affected the recently-merged company, having to deal with lower waste volumes and intense price competition. Nevertheless, after this bumpy beginning, the company reached a good profitability. And, although it came to sustain average growth on both gross and operating margins, this tendency has recently decelerated with this margins underperforming in 2012 and 2013.
- [By Arjun Sreekumar]
Others are using it right here in the U.S. to power trucks and other vehicles. Waste Management (NYSE: WM ) , for instance, has amassed a sizable fleet consisting of 2,000 trucks powered by compressed natural gas, or CNG. It even recently opened a new CNG fueling station in Bristol, Pa., to help fuel its growing fleet, as well as to provide fueling options for the public. �
Top Growth Stocks To Watch For 2014: Buffalo Wild Wings Inc.(BWLD)
Buffalo Wild Wings, Inc. engages in the ownership, operation, and franchise of restaurants in the United States. The company provides quick casual and casual dining services, as well as serves bottled beers, wines, and liquor. As of July 26, 2011, it had 773 Buffalo Wild Wings locations in 45 states in the United States, as well as in Canada. The company was founded in 1982 and is headquartered in Minneapolis, Minnesota.
Advisors' Opinion:- [By Rustic Nomad]
Buffalo Wild Wings (BWLD), a Minneapolis-based restaurant chain, recently declared its fourth-quarter financial results and they were not impressive. Amid tough competition from its rivals such as Dine Equity (DIN) and McDonald�� (MCD), analysts were expecting better financial results, which the company failed to provide.
- [By Steve Symington]
Buffalo Wild Wings (NASDAQ: BWLD ) investors sure hope so, because Monday marked the official debut of the company's new "Game Changer Ale,"�which was created with the help of the folks at Redhook Brewery.
- [By Garrett Cook]
Buffalo Wild Wings (NASDAQ: BWLD) was down, falling 14.45 percent to $142.99 despite the company beating Q2 expectations and raising its 2014 outlook. Wunderlich Securities analyst Robert M. Derrington lowered the price target on the stock from $180.00 to $170.00.
Top Growth Stocks To Watch For 2014: MEDIFAST INC(MED)
Medifast, Inc., through its subsidiaries, engages in the production, distribution, and sale of weight management and disease management products, and other consumable health and diet products in the United States. The company?s product lines include weight and disease management, meal replacement, and vitamins. It also operates weight control centers that offer Medifast programs for weight loss and maintenance, customized patient counseling, and inbody composition analysis. The company markets its products under the Medifast and Essential brand names, including shakes, appetite suppression shakes, women?s health shakes, diabetics shakes, joint health shakes, coronary health shakes, calorie burn drinks, calorie burn flavor infusers, antioxidant shakes, antioxidant flavor infusers, bars, crunch bars, soups, chili, oatmeal, pudding, scrambled eggs, hot cocoa, cappuccino, chai latte, iced teas, fruit drinks, pretzels, puffs, brownie, pancakes, soy crisps, crackers, and omega 3 and digestive health products. Medifast Inc. sells its products through various channels of distribution comprising Web, call center, independent health advisors, medical professionals, weight loss clinics, and direct consumer marketing supported via the phone and the Web; Take Shape for Life, a physician led network of independent health coaches; and weight control centers. The company was founded in 1980 and is headquartered in Owings Mills, Maryland.
Advisors' Opinion:- [By Monica Gerson]
Analysts expect Medifast (NYSE: MED) to post its Q4 earnings at $0.36 per share on revenue of $80.83 million. Medifast shares surged 2.19% to close at $26.08 on Friday.
- [By Ben Levisohn]
Shares of Weight Watchers have gained 23% to $24.36 at 11:27 a.m., while NutriSystem (NTRI) has gained 2.4% to $15.36 and Medifast (MED) has dropped 1.6% to $31.15.
Top Growth Stocks To Watch For 2014: TrueBlue Inc.(TBI)
TrueBlue, Inc. provides temporary blue-collar staffing services in the United States. It supplies on demand general labor to various industries under the Labor Ready brand; skilled labor to manufacturing and logistics industries under the Spartan Staffing brand; and trades people for commercial, industrial, and residential construction, and building and plant maintenance industries under the CLP Resources brand. The company also provides mechanics and technicians to the aviation maintenance, repair and overhaul, aerospace manufacturing, and assembly industries, as well as to other transportation industries under the Plane Techs brand; and temporary drivers to the transportation and distribution industries under the Centerline brand. It primarily serves small and medium-size businesses. The company was formerly known as Labor Ready, Inc. and changed its name to TrueBlue, Inc. in December 2007. TrueBlue, Inc. was founded in 1985 and is headquartered in Tacoma, Washington.
Advisors' Opinion:- [By idahansen]
The entire demand labor industry should do well as the US Department of Labor just reported that 169,000 more jobs were added to the American economy. The more work there is, the more demand there is for the services of staffing solutions firms such as Labor SMART, Paychex (NASDAQ: PAYX), TrueBlue (NYSE: TBI), and Robert Half International (NYSE: RHI).
- [By Travis Hoium]
What: Shares of staffing agency TrueBlue (NYSE: TBI ) jumped 10% today after the company reported earnings.
So what: Revenue jumped 19%, to $422.3 million, and beat estimates of $420.2 million from Wall Street. Adjusted earnings per share were also up 19%, to $0.31, outpacing estimates by $0.05.�
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